Natural environment, low crime rates, and New England lifestyle make Maine a great choice for homebuyers. Additionally, with 17.9% of listed homes seeing price drops and 29.1% more homes for sale in Maine, it’s the best time to buy a house in the Pine Tree State.
With Houzeo, Maine’s best home buying website, managing your home search is simple. You can look through the latest listings, save your favorites, schedule showings, and submit offers, all at your fingertips.
👉 Download the Houzeo mobile app to simplify your Maine home search.
At a Glance:
- Get a mortgage pre-approval and set your budget to make competitive offers in Maine’s hot housing market.
- Assess long-term livability, schools, and amenities based on past market trends to pick the right neighborhood for you.
- Consider seasonal risks like floods due to ice melt, severe winter storms, thunderstorms, and lightning.
- Conduct a home inspection to look for termite damage, pest infestation, storm-related issues, and other possible defects.
- Account for additional expenses like HOA dues, flood insurance, property taxes in Maine, and closing costs in Maine.
7 Steps for Buying a Home in Maine ⛵
Buying a home in Maine doesn’t have to be complicated. Whether you’re just starting your search or are already browsing homes for sale in Portland and other cities, these 7 simple steps will help you move forward with confidence:
Step 1: Decide Your Homebuying Purpose
Whether you’re looking for a getaway or seeking an investment, knowing why you’re buying real estate in Maine is essential. It sets your expectations and helps you make smarter choices. Here’s what you should keep in mind:
- Primary Residence vs. Investment: If you’re buying a home, choose places that fit your lifestyle, whether it’s a city like Lewiston or a suburb like Cape Elizabeth. For investment, consider homes for sale in Lewiston, where institutions like Bates College drive demand.
- Short-Term or Long-Term: If you plan to live in the house for only a few years, focus on neighborhoods with strong resale value. You can check out homes for sale in Southport or Kennebunkport, where the housing market continues to grow.
- Space Requirements: If you’re looking for larger lots or big backyards, consider suburbs like Yarmouth and Freeport. However, if you prefer something easier to manage, condos in places like the Old Port area in Portland can be a smart option.
Calculate the cost of living in Maine to get a detailed breakdown of expenses like housing, utilities, transportation, and more. 🏡
Step 2: Explore Financing Options
Before making a purchase, it’s important to understand the financing options available for you to make an informed decision. Here’s what you need to do:
1. Prepare Financially
- Check Your Credit Score: Lenders will check your credit score to determine if you’re eligible for a loan. Aim for a score of 500+ for an FHA loan and 620+ for a conventional loan.
- Calculate Your Debt-to-Income (DTI) Ratio: Lenders often use your DTI ratio to assess how much home you can afford. Keep your DTI below 36%, particularly if you’re buying in pricier areas like Falmouth and Cumberland.
- Set Your Budget: Ensure your budget includes property taxes, homeowners’ insurance, and potential flood or hurricane insurance, particularly in high-risk areas like York and Cumberland Counties.
👉 Use a Maine mortgage calculator to estimate how much property you can afford in the Pine Tree State.
2. Explore Loans and Assistance Programs
Down payments in Maine usually range between 10% and 20%, but often vary based on the financing option you choose. You can also look for suitable Down Payment Assistance Programs (DPAs) to help you cover part or all of your down payment.
| Program | Description |
| FHA Loans | Require just 3.5% down and are ideal if you’re a first time home buyer in Maine. |
| VA & USDA Loans | Offer 0% down with lower interest rates. Perfect for veterans or those purchasing homes in rural areas. |
| MaineHousing Advantage | The program provides up to $5,000 in cash assistance for down payment or closing costs. This assistance is not a second mortgage and works with almost any type of home loan (government-backed or regular bank loans). |
| MaineHousing First Generation Program | A low fixed rate mortgage and up to $10,000 in down payment or closing cost assistance for buyers who have never lived in a home owned by a biological parent or guardian, or who spent time in foster care. |
| MaineHousing PPI (Purchase Plus Improvements) | The program allows you to buy a house and finance the required repairs from the same mortgage. You can add up to $35,000 for improvements. The work must start within 30 days and be finished within 180 days. |
Step 3: Get Pre-Approved for a Mortgage
The Maine housing market is competitive, so get a mortgage pre-approval to show sellers you’re a serious buyer. In fact, 86% of sellers prefer buyers who are pre-approved. It also helps you negotiate better and reduces delays in the transaction.
Shop around to find the best Maine mortgage lenders—compare their programs, rates, and terms. Once you’ve narrowed down your options, get pre-approved by submitting documents like proof of income, credit history, bank statements, and your ID proof.
Step 4: Dive Into the Maine Market
Whether you’re looking at houses for sale in Augusta or anywhere else in the Pine Tree State, here’s how to buy smart:
- Online Listings: If you’re wondering how to buy a house, starting with online listings is a good first step. Use platforms like Houzeo to search homes for sale by price, zip code, and more. You can also filter for must-haves like a backyard, waterfront view, etc.
- FSBO (For Sale By Owner) Homes: Explore FSBO listings, as they often offer more flexibility in price negotiations. This is because sellers aren’t paying 5% to 6% in agent fees.
Aroostook is the nicest and cheapest place to live in Maine. The number of homes for sale in Aroostook is on the rise, thanks to its safe neighborhoods and diverse job opportunities.
Step 5: Make a Competitive Offer
In Maine’s competitive housing market, homes tend to sell fast. Make sure you focus on real estate comps for a more accurate picture. Here’s a checklist to help you craft a strong offer:
- Seller’s Name and Address: Don’t forget the basics—include the seller’s legal name and property address.
- Price and Terms: Offer a price based on Fair Market Value (FMV) and comparable sales. In high-demand areas like Lewiston, you might need to offer above the asking price to stand out.
- Down Payment: In Maine, down payments usually range from 3% to 20%. In competitive markets like Kennebunkport and Falmouth, a larger down payment can strengthen your offer.
- Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots like Portland and Augusta, where homes can go fast.
- Contingencies: Include protections like home inspection, financing, and flood risks. These can safeguard you from issues like forest fires, flood damage, or structural problems common in homes in this area.
- Concessions: Request the seller to cover some closing costs. In Maine, it’s common to negotiate repairs after the inspection, such as roof issues, HVAC problems, or plumbing leaks.
- Deadline for Seller’s Response: Set a 24–72 hour deadline to encourage a prompt reply. This helps prevent delays and keeps you on track for Maine’s average 44-day closing timeline.
- Closing Costs: Expect closing costs around 2% to 5% of the home’s price, including title insurance, property taxes, and lender fees.
Step 6: Conduct Inspections and Appraisals
A standard home inspection in Maine should cover:
- Exterior: Examine doors, trim, windows, and siding for any damage or wear. Additionally, check the drainage systems, such as gutters, and proper grading to ensure everything works smoothly.
- Plumbing: Check for leaks, corrosion, and water pressure issues, especially in Maine homes built before the 1980s. These houses may have outdated pipes that are prone to damage from freezing temperatures.
- HVAC System: Make sure the heating and cooling systems are properly checked and can handle Maine’s cold winters and humid summers. It is essential for year-round comfort.
- Electrical System: Verify everything is up to code and can withstand hurricane and storm-related power surges, especially snowstorms and thunderstorms common in the coastal areas.
- Roof and Attic Condition: Carefully assess for damage or age-related wear. It’s important in this area, prone to hurricanes and heavy snow. Check if the attic has adequate insulation, proper ventilation, and if there are any signs of water damage or leaks.
- Foundation and Structure: Look for cracks, moisture, or settlement issues, particularly in flood-prone or sandy-soil areas.
If you’re looking for homes in Ogunquit or the coastal areas of Maine, a wind mitigation inspection for storm risk is recommended. Also, if you have a condo over 30 years old and higher than two stories, make sure you get a Milestone Inspection for structural safety.
Once the inspection is complete, your lender will order a home appraisal to confirm the property’s market value. This step ensures the loan amount aligns with what the home is actually worth. It can impact final loan approval, especially if the appraisal comes in low.
Step 7: Close on Your Maine Home
Almost there! Closing usually takes 30–45 days, from signing the contract to getting the keys in your hand. Here’s what you can expect:
- Final Walkthrough: Make sure all repairs have been completed, and the home is in the agreed-upon condition.
- Buyer Closing Costs: Expect to pay 2%–5% of the home price. This includes title fees and lender charges, plus prepaid taxes or insurance.
Once you sign the dotted line and transfer funds to the escrow—congratulations, you’re officially a homeowner. Grab those keys and cue your happy dance! 🎉
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Homestead Exemption: If the home is your primary residence, apply for Maine’s Homestead Exemption to reduce your property taxes. You could get up to a $25,000 reduction in taxable value—especially valuable in high-tax areas like Scarborough.
- Set Up Utilities: Get water, electric, internet, and trash service connected, often through the MPUC. And don’t forget pest control, due to its natural landscape, rodents, ticks, mosquitoes, ants, and bed bugs are a persistent issue here.
- Get Insurance: Homeowners insurance is required if you’re financing. Flood insurance may also be needed in FEMA-designated high-risk zones. The insurance rates are higher in coastal areas like York and Washington Counties.
- Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae buildup. Consider wind mitigation upgrades to reduce insurance costs.
How to Buy a House in Maine Without a Realtor?
Start by researching neighborhoods and browsing listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Should You Buy a House in Maine?
Absolutely! Maine offers incredible opportunities for homeowners, whether you’re buying for investment, residence, or vacation. Additionally, with more homes being sold below the list price, now’s the best time to buy a house in Maine.
Whether you’re drawn to Portland’s growing job market or Bar Harbor’s stunning natural landscape, Maine has it all. There’s a spot to match every lifestyle and budget. So if you’re on the hunt, check out our list of the best places to live in Maine!
